Tom Lee’s BitMine stock price has crashed in the past few months, erasing billions of dollars in value. BMNR has plunged by over 78% from its highest level this year, mirroring the performance of other Digital Asset Treasury (DAT) companies, such as Michael Saylor’s MSTR and MetaPlanet.
BitMine’s stock price has crashed even as the company continued accumulating Ethereum, a move that has seen it own tokens worth over $11.3 billion, now equivalent to 3% of the market capitalization. It has accumulated over 331k tokens in the last 30 days.
A closer look at BitMine’s performance shows it has outperformed MSTR and MetaPlanet over the past few months. It has dropped by 20% over the last three months, while the two peers have dropped by over 40% in the same period.
Why BitMine Stock is Better Than MSTR and MetaPlanet
There are at least three main reasons why BitMine is a better investment than MicroStrategy and MetaPlanet.
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First, BitMine offers an avenue for making money, as the company plans to launch the Made in America Validator Network (MAVAN) in 2026. This will be an essential service that enables the company to start generating a return on its Ethereum holdings.
Data compiled by StakingRewards shows that staked Ethereum generates about 2.75% in annual return. A simple calculation shows that if BitMine were to stake all its ETH, it would generate over $302 million in revenue per year. Such a return would help boost its return if Ethereum rises, and offset any losses if it drops.
On the other hand, Metaplanet and Strategy own Bitcoin, an asset that generates a return only when the price is in an uptrend.
Second, Ethereum has more bullish catalysts than Bitcoin. For example, the supply of ETH on exchanges has dropped to a record low. About 8.26% of the Ethereum supply is on exchanges, compared to Bitcoin’s 14%, a sign that the coin is seeing more demand from investors.
Third, there are signs that the financial system is being built on Ethereum even as competition in the layer-1 industry rises. Data shows that top companies like Visa, PayPal, Fidelity, and JPMorgan are all building on Ethereum. The total RWA assets on Ethereum have increased to $12.7 billion, well above BNB Chain’s $1.7 billion.
Additionally, BitMine is already a profitable company, reporting net income of over $321 million in the last fiscal year, which helped it declare an annual dividend of $0.01 per share.
To be clear: BitMine and other treasury companies will remain under pressure in the near term as demand for digital asset treasury companies wanes. However, in the future, BitMine’s cash generation is likely to help it become a more profitable company than MSTR and MetaPlanet.
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